C. 20 days is correct. HRS §431C-33 provides that within twenty days after the owner executes the life settlement contract , the settlement provider must give written notice to the insurer that issued the policy informing it that the policy has become subject to a life settlement transaction. The notice must be accompanied by the documentation required by Hawaiʻi's life settlement laws.
This notice serves an important administrative and regulatory function because the settlement normally results in a change of ownership, beneficiary designation, or both. The issuing insurer needs sufficient information to process the transfer accurately and to recognize the appropriate party as the policyowner after the transaction is completed.
The provision also works alongside another Hawaiʻi requirement stating that an insurer must not unreasonably delay a lawful change of ownership or beneficiary arising from a valid life settlement contract.
The twenty-day requirement should not be confused with the three-business-day periods governing movement of settlement proceeds through escrow after transfer documents and insurer acknowledgment are received. These are separate statutory deadlines governing different stages of the transaction.
Therefore, 5, 10, and 30 days do not represent the applicable insurer-notification period.
Reference topics: HRS §431C-33(g); Life Settlement Procedures; Issuing Insurer Notification; Ownership Transfer.
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